Finding the highest quality value managers is our sole focus. Our independence provides us the freedom to consider all and invest only with those few who pass our rigorous due diligence process and meet our strict investment criteria regarding transparency, liquidity, fees and, most importantly, the use of no leverage. We do not feel the urge to add new managers solely to increase diversification.

We define risk in terms of permanent loss of capital, not in terms of volatility. As Warren Buffett states, "we would prefer a bumpy 18% return as opposed to a smooth 10%". We understand that, in order to achieve our desired long-term compounded returns, one must be prepared to have down months and even down years.

Our selected managers share our goal of compounding wealth while protecting against permanent capital loss. They are not governed by volatility and will carry large cash balances if they are unable to find investments with their desired margin of safety. They truly understand what they own and welcome a declining market, as it provides them with the opportunity to invest at discounted levels.